buyback. mexico is putting its money where its mouth is, literally. we have the skinny on the that taxto fight ability -- fat to fight obesity. through whiskey as the holidays approach. >> from bloomberg world headquarters in new york, this is "in the loop" with betty liu. >> good morning. it is thursday, december 5. ."u are "in the loop i am betty liu. we have the breakdown of china to offeringe closer the iphone as we get closer to the four g network in china. it is a big moment for china mobile and apple. another big moment for ford. matt miller has details on the 50th anniversary of the mustang and how alan mulally has old

tricks to get new business overseas. stephanie ruhle has highlights from her exclusive interview with hedge fund heavyweight title -- kyle bass. d.c. as goldman is in healthcare.gov sees a surge in users. signed a deal with china mobile to offer iphones on its vast network. we are joined with more perspective on what this possible deal that has not been announced yet would mean. tom, reports are rampant that they are just about to sign this deal. on the apple side, how big a boost is apple going to see if they did sign a deal with china mobile.

>> yes, good morning, betty. a way i look at china mobile for apple, this is been a long, speculated catalyst, and the question was when, not if. withu look at china mobile 7 million subscribers, this could be a very big deal for apple, especially if it means they could be selling the devices as early as this month. figures thatcting could meaningfully be improved. >> this is a long time coming for china mobile. they have been losing out because they had not carry the iphone. >> the story there was it was with the china network -- the china mobile network, which is no longer the case. also, the idea that they will be

rolling out 4g, which is important for the iphone, having the iphone on a faster network. there were technical hurdles as well in addition to the companies forging agreement. this could be a boost for both china mobile and apple. >> it has been well reported apple,m cook, the ceo of has spent a lot of time in china, visiting the country twice in the last 12 months. how much has that helped? >> i would say that if this deal is imminent, that would have helped them sealed the deal, so to speak. his going there was important. let's it certainly seems that way -- >> it certainly seems that way. tom forte, thank you. it is here for you car fans. mustang.ord the 50th anniversary will be

sold outside of north america for the first time since 1964. matt miller has the details. that would have been before you were born. and ihad a 64.5 mustang, have never forgiven my parents for selling it. fordis embracing this one strategy that alan mulally has been pushing. he came on after the current generation of mustang had been produced. you are looking at pictures of the 2015 mustang. it should go on sale at the end of next year, late-2014. the key difference is it will go on sale around the world. it will be on sale in china. it will be on sale in europe. a lot of those countries, for the first time ever. there are a lot of things and make this a revolutionary car as far as the mustang is concerned.

i was talking about this earlier, and it is the in the weeds for a lot of people, but fans, it hasang been the last sports car in the told to use a rear axle connect both wheels in the back. it is not heard of now. this car finally changes over. it will anger the purest. liter ego boost four-cylinder engine, with twice the fuel efficiency. it will have more power than the v6. it looks more like a pony car than the big muscle cars that come out of gm and chrysler. i will go see this car in a few minutes, and i have been reading about improvements to the

interior. equality on the interior has been a real focus. -- quality on the interior has been a real focus. >> you can tell you love this car. >> everyone in america has loved, at one point or another, 1960's mustang. they were the first car you saved up for, or if your parents had a lot of go, or really -- dough, or really loved you. it is great to have the most important american car since the model t, out again, and hopefully looking much better than those. >> i am excited to hear your report. >> it is an exciting day. >> i agree. >> matt miller. keep it here. another will be sitting down lolly on this new

wood -- alan mullally on this new edition of the ford mustang. moving and shaking, hedge fund billionaire eddie lambert, whose efforts at sears are not invest -- impressing investors. they are pulling out their money. worth 471 million dollars before distributions were made. it has lost 1/5 of its value. eddie lambert took over sears in 2005. sales have fallen for 20 seven straight quarters. sears stock has dropped 70% from its peak in 2007, but they are up about 23% so far this year. it has not stopped those redemptions. eddie lambert is not the only hedge fund anyway we are watching. kyle bass's fund has taken a stake in general motors. stephanie ruhle spoke with kyle bass. why hewe get to gm and

is going long on the carmaker, talk about herbalife and his battle against bill ackman. >> it is not necessarily a battle against bill ackerman. kyle bass has done a lot of work. he associates the fact that there is such high youth unemployment, may be that is why there is multilevel marketing. he is long herbalife and feels good about it. >> we are catalyst-driven investors, and in this case the catalyst is coming in the next 60 days were they will have a three-year audit done. there were not allegations of an improper audit. .ou have a re-audit being done they will be able to access the capital markets, borrow one billion, $2 billion. finances innot see

the next month or two months, would that change your tune? >> it will. they have said on conference calls that it will be done by year-end. not,nuary 2, if they do will happen to your investment? >> it depends how i am positioned going into january 2. >> we started talking about herbalife one bill ackman called a short and when carl icahn started buying shares. i spoke to an analyst who said we should get the numbers by the end of this year, but kyle bass, i want to see, january 2, if they do not give the financials, it will make people start to think what is going on inside the company. >> you are absolutely right. let's switch over to general motors. >> it really interesting. in three weeks, it will no longer be government motors, and

that is one kyle bass thanks to my no pun intended, they will be able to about the engines. >> i think the u.s. government has been selling gm for a long time, and they are almost out, and there were prohibitions put on gm management by the u.s. treasury making it government motors, and it is about to be general motors again. it is a fascinating time, a catalyst time to be investing. i think it will release management to be able to put in plans andntive comp do something that a shareholder friendly. -- that is shareholder friendly. >> not that the government is out, it is one of the reasons general motors is impressive, and i said do you feel the same way about financials, and he said no, that has already happened, and as far as european banks, he is actually short. >> interesting.

you got a lot out of him. >> and will have more throughout the day. >> was turned to washington. alexpeople signed up for -- health insurance to the exchange in the first two days of december's than in all of october. john goldman has been following healthcare.gov. break down the number -- julianna goldman has been following healthcare.gov. break down the numbers. is sayinginistration 29,000 people enrolled in health plans sunday and monday, the first two days of the so-called fix. if the 6000 people in total .hrough 30 -- through tuesday november, 100,000 people enrolled, and those numbers look pretty good compared to what we saw in october, only 27,000 people enrolled with all of those website problems. we still do not know what the numbers look like for the 14 states plus the district of columbia that are doing their

own exchanges, we expect those numbers to be better because their websites have not been as troubled. here are some of the other issues. the white house still needs to get 7 million people enrolled by the end of march, and they still have a long way to go. the averages about 40,000 a day they will need enrolled through the federal exchange, so they are probably not likely to hit that target of 7 million still. the other issue is the front end user experience is working, so people can get on the site and in role, but the backend is still a problem and that is what they need to fix, because insurers are reporting the information they are getting is either incomplete or garbled, and that is preventing them from actually registering people in insurance plans. that is the big problem right now. people are enrolling. they are choosing their plan, but it the insurers cannot -- if

the insurers cannot sign them up, they will be without insurance on january 1. >> that make sense. they key is getting a young and uninsured, right? >> yes, that is the focus. they need this cohort of young, invisibles to balance out the risk pool because that is what keeps costs down. president held a youth summit to spread the word. >> if you get sick and you get to the hospital and you do not have coverage, somebody else is also going to be paying for it. it might be your family, they cannot afford it. it may be everybody else, who does have insurance, and is acting responsibly, and is essentially subsidizing for your care. >> the problem here is that first impressions are lasting impressions and the obamacare

brand has been damaged. there was a harvard poll that showed that 29% of young uninsured are leaning toward signing up, but 41% say it is a 50-50 proposition, and that is something the white house and democrats need to turn around. >> julianna goldman, thank you. kroger is out with results this morning. shares are up 60% so far this year. we will talk about investor appetite with the company cfo. also, mexico tries to get fiscally and physically fit. will a tax on junk food and soda be a solution? it is not just for drinking and we will talk to a man who claims to have the best whiskey collection in the u.s.. why the drink could make a better investment than stocks. stay "in the loop." we're just getting started on this thursday. >> "in the loop" with betty liu will be right back. ♪

>> well, ford is unveiling the new mustang today at an event that some might call the latest evidence of a renaissance among detroit's automakers. a beautiful card. , and manufacturing in the u.s., but our next guest disagrees. he writes in his latest bloomberg view column economist gary shilling joining us. always rate to see you. see you.to so, why are you so down?

>> well, i am not down. taking up in is this country and there is this reassuring, if you will, coming back, but it is robotic- intensive. mean, robotic intensive -- workers are not being hired? >> that is right. the output per employee in manufacturing it is right back on trent, growing 3.5% a year. as a result, with the revival of manufacturing, the employment, although there has been some pickup in this recovery, it is really just a leveling of what has been a long-term downward trend. to hugenot go back factories, 5000 people in an auto factory, or making shoes or textual's -- textiles. >> it does not matter, you are saying, if the automakers are

doing well and their cars are selling well. it does not translate to more jobs. >> holding not. in mexico, a looks a getting their act together -- probably not. in mexico, it looks like they are getting their act together government, and because of the synonymy in the far east, there is a lot shifting to mexico. they are more like to be in mexico in terms of supplying north america. >> what about the argument that wages in some of these emerging markets that have traditionally taken away manufacturing jobs, like in china, they have gone up, so it is less appealing to produce products there, so you see this on-shoring, and some say that trend will not reverse. >> you go from two dollars an hour to three dollars an hour,

and compare that to $30 an hour in the u.s., and people coming in now are vastly reduced in pay. the gap is so huge. >> it will take a long time. labor iss right, and less important as things get automated. the robotics, the intensity of manufacturing, which has left and less labor in the park -- less and less labor. >> and you have a president that says he will double exports in five years. >> he said that in 2010, and it would take a 40% increase in exports to get there. i think that is a track that stretch. he did not say -- that is a stretch. .e did not say to whom everyone wants to export, but nobody wants to import. when you say you want to export, who is going to buy our stuff?

like in 2010, he was thinking wasd -- >> in 2010, he thinking exporting to china? >> i do not think he thought about it. he is long on ideas and goals, but short of the specifics. you see that with obamacare as a shining example. i am not sure here his advisor said we would export to the eurozone, china, japan, eastern europe -- i am not sure they laid that out or even thought about that, at that is what you have to do, because everybody wants to export. nobody wants to import. >> that is true. >> unfortunately, that trends toward protectionism, which is the unfortunate implication. >> which is the opposite effect. >> exactly. >> great to see you. i got my honey. >> you are a honey. you get your honey. bloombergilling, our

columnist. to read more of his columns go to bloomberg.com/view. ♪

>> first. bloomberg. >> you are watching "in the loop ," live on bloomberg television and streaming on your phone, tablet, and on bloomberg.com. . good morning. i am betty liu. the gray television is on the markets. equity futures right now are very -- bloomberg television is on the markets. equity futures right now are very little changed. we will have the kroger cfo in about 30 minutes. in the making,rs but the volker rule might finally be realized. treasury secretary jack lew will discuss details of the final volker rule in a speech this morning and regulators will vote next week on a law that could

affect $44 billion in revenue from the five to get banks. microsoft expanding encryption to protect customer information following reports that the government was intercepting data. the company is also stepping up legal efforts to protect the data. belown plunged 20%, $20,000. the people's bank of china said bitcoin is not a currency with real money -- meaning, and does not have the same legal status as hard currency. it might in the future. we're standing by for the latest read on the economy. initial jobless claims and personal consumption on deck. we have a jobs report tomorrow. michael mckee has the real deal on the numbers. data, two other central banks have their decisions -- no change on the ecb or the bank of england. >> but it does tell us

something. there are implications for both of the banks in making no decisions. the bank of england, their economy is picking up and the government raise their economic nexth forecast to 2.4% year. should that push up inflation, they have a problem. they are already at 2.6%. by doing nothing, the bank of england tells us they do not think inflation will be a problem. across the channel, to the ecb, their problem is inflation is too low. it was at 0.9% in october. their decision says they are staying put and they do not need to take additional action as it did last time with a cut in interest rates, so they are on hold, but we will watch what mario draghi says. they're expected to put out new forecast for the next two years and their first look at 2015, and people will try to extrapolate where they think the economy is going and where

policy will go. >> and the implications here for us in the u.s.? >> we'll will be watching the gdp numbers because not only does the fed want to see the unemployment rate come down, but they want proof that it will stay that way. we need to see strength in the revision, but numbers that tell us it is not just inventory building. there is momentum going into the fourth quarter, and reason to think the companies will continue hiring. the numbers, including jobless claims will be important to investors. >> they will be important. those numbers are moments away. ,e will get jobless claims which are expected to come in at 320,000 claims for the week ending november 30. these are numbers we get ready for the monthly jobs report out tomorrow. also, personal consumption's -- numbers are out as well, up 1.5% would be the third number --

quarter number. a measure of inflation is expected to be recorded at 1.4%. all of these numbers would have implication on fed policy, although most expect that if we see any change in interest rates, that is not going to happen until sometime -- and it cannot, anyway, until sometime next year. the numbers are out. 298,000 claims is where it is hitting. that is below the hundred thousand. pretty significant. well below the estimates of 320,000. personal consumption, one point four percent versus the original reporting of 1.5%. at 1.5%.oming in tommy what you make of these numbers. >> the labor department says it is difficult to seasonally adjust because we have the veterans day holiday. you see the big drop their. analysts will throw that out.

it does tell you we do not have a problem anywhere. it is not a shock when you see numbers fall that much. gdp is important. it is a big increase, suggesting the economy did have some momentum possibly going into the third quarter. one of the things we are looking at in gdp is corporate profits. corporate profits for the third quarter, after you take out inventory and capital adjustments, you end up with 2.2% gains. it was down .10% in the second quarter. gdp numbers, personal consumption comes in at 1.4%, and that is not good news, but is this investment is up by quite a bit, 16.7%, compared to 9.5%. we have been looking for business to start spending, and if that starts happening, that would be good news for the economy overall. >> michael mckee, thank you.

coming up, a segment filled with holiday cheer. we will have some fun here. why you should look at whiskey at -- as more than just a drink. also, apple's big score -- close to a deal with the world's largest mobile carrier. kobe bryant getting week -- ready to return for the lakers this weekend, but he tells us more about the king he would really like to be playing for. stay "in the loop," for more on kobe bryant. ♪

>> well, forget about messing in the stock market. our next guest says put that booze.ooz -- he is one of the top whiskey collectors in the world. stop that. love into ad his business. why do i have tom keene here question recchi wants to fool around, and he wants to get a drink. >> it is 5:00 p.m. in belgrade. >> somewhere, right question mark >> -- right? tasteore we get to the test, which i know tom wants to do -- >> the way. -- no way. >> you brought bottles with you. >> a lot of my collection is about quality rather than quantity. a lot of my pieces are rare.

into twoparated these groups. on the left-hand side, tell us about those bottles. >> let me start off -- getting into whiskey collecting is a unique subject. the bottle that i wanted to showcase, the pale, yellow one in the middle, it is hard of a classic mold selection. 10s is one that i bought years ago, and it has appreciated considerably. touching $1000. that is one way to get into the collecting seen. product.sic malt i started off with smaller bottles. >> that is about $1000. >> it is now, but you can get annual releases that are a couple hundred dollars.

you can get them from already sources in thele united states. have a release from the around990's, which was 300,000 a bottle. -- $3000 a bottle. the bottle has been fantastic to taste and enjoy, but if you can buy one today, they are running around $2000. >> how do you know what is going to go up? >> it is very complicated. not all whiskey appreciates. iconice to pick up on brands. like glennor things

farkas. we will be trying this 40-year- old. these are established brands. >> you have to do a lot of research. >> the best thing i suggest is go to events, whiskey tasting functions, like the one i hosted in las vegas, where you'll try bottles like this and you meet the best distillers and blunders. a my problem is i open bottle, and we do not collect it, because we drink it all. and i asked a dumb question -- can you open a bottle and keep it on the shelf? >> that is the beauty about whiskey. open it, it will stay for at least five years or so. when it gets to about one quarter size, you can invite your friends and enjoy the product. i am like you. i also enjoy the product.

>> you have to enjoy the product. >> my philosophy is by 2 -- one to enjoy. >> with the bottle next to you. >> other more expensive. >> these are more expensive. i want to talk about this iconic this delivery that released something called a black ball mark. $6,000 in value. ore, andthe black bom that is about $4500 retail. then, this was just launched in the united states. --s will run at 4.5 thousand $4500. >> you would say buy into that one, because it is going to go up. >> bottles like that will definitely go up.

all of these bottles have gone up because all of the bottles are iconic. always go with something that have some substance. look for something that has more of a limited production. now it is time to drink. >> that is the queue. >> this is a wonderful distillery. >> how much is that bottle? >> $1500. $2000. >> you are kidding me. >> i have a treat for you. >> this is 1972? 1972.s is vintage but i have to stop doing early i had stop doing early morning television. >> this is owned by a six generation george grant. they have about four decades of whiskeys. this is from 1972. not the proper way to

treat it. -- i am not a whiskey drink or. get been nosing, all of the flavors. this is the perfect way. sir.e pour you some, >> that is more than some. >> it is thursday, isn't it? >> do you like to have a cigars with your whiskey? >> i like a cigar, but you really do not want anything else on your palate. good health. >> here, we say human resource violation. nose, see up to your what you get. >> i do that with a genny cream alice well. e as well.al

>> let it sit there. there is so much age in their. it is touching 39 years old. >> i have never had anything this glorious. works well, you have now. >> it is a great whiskey. >> do you mind if we finish it? >> radio will wait. there is a marketing of more affordable scotch. what do i get most wrong when i go into a bar or walk into a liquor store and i am like everyone else buying a 40 or $50 bottle of scotch? >> you are not really making a mistake. >> should i spend $20 more? >> start with that. then, move up the ladder, explore, and go to the next level. you cans two things --

become a collector and start drinking as well, but that is when you will start appreciating. >> how did you get into this, mahesh patel? >> i have been around it well over 25 years. i'm originally from the u.k.. when i was a teenager or getting i starteduniversity, to explore whiskey. >> i might have to as well. rick snyder is fine. toyou going -- i might have as well. >> that is fine. >> a christmas party at betty liu's. >> absolutely. >> thank you. >> my pleasure. .> thank you, tom >> we are talking about disinflation on the radio. this is much better. >> this is from a region where the majority -- >> this is 300 group. -- proof.

>> thank you. >> thank you. coming up, much more, not on drinks, but on how the country is cracking down on its obesity epidemic. bloomberg has uncovered a hidden helm of youat the all. we have the details of the soap opera-like story that landed him at the top of his company. we will continue. tom, oh, my goodness. [laughter] >> outstanding. ♪

>> all week long, we have been focused on the growing business in mexico, but one area is growing that mexicans are not proud of, their waistline. they passed an eight percent tax on junk food, and a one peso levy on soft drinks. over two/thirds of mexicans are overweight, so is a tax the answer to skinny a market?

someone who has done extensive research on the economics of health. lisa powell. thank you for joining us. tell us first, if you think something like this is going to work to fight obesity in mexico. >> thank you for having me. mesko has moved up to the rank of the most obese nation in the world, and the concern is youth obesity. mexico is looking to see what it can do, and prison sentence might be one way to go. they are trying to disinvest -- disincentive eyes sugary beverages and consuming junk food. research has shown if you have a 10% increase in price, which is what the one peso per liter tax works out to be, it is estimated that would reduce conduction --

consumption. lower income individuals tend to be more price sensitive, and given that this is based on data in the u.s., we could see more of a bump in reduction. tendsx on junk food, that to be less price sensitive, so with an eight percent tax, we can see a 6%-7% reduction. part, andstand that that makes sense, but will that mean slimmer waistlines? ? -- waistlines? >> it is an excellent question. it depends on what people will substitute. what they do with the revenue becomes important. the tax is estimated to bring in about $1 billion in revenue. one of the things they campaigned on was making water available in all schools in mexico, so, really, we have whyn heard as reasons

people are drinking bottled soda, air is no safe alternative drinking water. if we can take the money and improve the infrastructure to make safe, good-tasting water available, not just in homes, but in other places as well, we might see the substitution toward water, which is zero calories, and a net reduction in bodily -- body weight. >> let me play for you the ceo of coca-cola, who i asked about the possible tax in mexico, and he gave this reaction. >> we have always seen that discriminating taxes have never produced the intended solution, no matter where they were tried, which ever country. they have never produced the intended result. would,an, clearly, he for faster have that -- i'm sorry, professor. go ahead. >> we have seen this work in

tobacco where we have had large tax increases, and they have been linked to typically to show that it has helped to bring down tobacco consumption. it brought down initiation, particularly among youth, who tend to be more price-sensitive than adults counterparts. if we had an increase in pricing, a substitution, it is also about habits -- setting out what your habitual drinks will be. will you reach for your sugar- sweetened beverage, or substitute that with more water intake? >> thank you, professor. thank you for joining us. it could have implications in the united states. lisa powell from the university chicago.is in coming up, the gas station owner that let a graffiti artist use his wall for a canvas. it turned out to be a good money-making decision. ♪

>> today's big number is $300,000. that is how much a former gas station owner might give for a painting from one of the world's best-known graffiti artists. you know whole we are talking about, the british phoebe artist banksy. he did not know who he was when a friend of a friend asked if he could paint on his wall. the gas station was sold, and the owner removed the painting and it is being auctioned off in beverly hills. it is 56 minutes past the hour's -- hour, which means bloomberg television is on the market. we are reversing a four-day slide, or we were. we have turned lower on the futures. oning up, two tech giants the verge of joining forces. apple is close to a deal with

the world's largest mobile carrier. we will have more when we come back. ♪

>> 30 minutes to the opening bell, this is "in the loop with betty liu." the countdown begins right now. >> welcome back. here is what we are working on this morning. european central bank kept the benchmark interest rate at a record low. the bank of england did the same, holding its benchmark rate at 1.5%. government regulators on the verge of signing off on the volcker rule. that may affect $44 billion in revenue for the numeral five biggest banks. carl icahn is turning up the heat on apple. the billionaire investor wants shareholder votes to boost its stock buyback plan.

apple is in the spotlight this morning, trying to move closer to offering the iphone to its customers. journal" street reports that a deal has been inked. jon erlichman is in l.a. with more on the push to put iphones in the pockets of chinese. they have been called the one thing that could help apple see its stock price go up even more. >> the numbers explain why. this would be a hugely important development for apple, betty. china, a mobile care that is 750 million subscribers. you're talking about a carrier that makes at&t and verizon look tiny in comparison. a lot of those subscribers -- it is always important to highlight -- haven't moved the world of smartphones are the kinds of devices that apple sells. but they are still about 175

million of those customers who pipering those devices -- jaffray has estimated that this deal alone could result in 17 million more iphone sales for 2014. it is obviously a big number for them. they have been working on this for a long time. there are different details on why it has taken so much time, but it is a big one. >> does it take a pressure off apple? >> financially, there is no doubt, but there is a sort of question about innovation. if you think about the innovation stories we have highlighted the last few months, whether it is a google class, , it is important for apple to be part of those conversations because they matter to product enthusiasts and they matter to investors as well. it gives you guidance on how well apple is using its cash, where is the staff focusing the future. about thealked

exciting things without sharing too many details. it opens the door to conversations like the one you just highlighted, carl icahn young, hey, apple, i love but take those billions and given back to shareholders. ofwants to get value out that with all the cash. jon erlichman, are bloomberg west senior correspondent in l.a. catch jon erlichman with the "bloombergy day on west." carchanges to not just the but the markets, where they are selling this new mustang. bloomberg correspondent and motorhead matt miller is at the unveiling in manhattan. i know you love this car. it is a classic. what is the biggest change to the mustang. cars has toho loves love the mustang. the biggest change is in so much about the car, but really, what

you mentioned in the intro there. it is all about how they are selling it. when alan mullally came to run for it, it was about a year after they had debuted the current mustang. he said to them, i want all of the cars that we built you to be billed for the entire market, the global market. he gave them 7 years to do it. this will be sold everywhere -- in europe, and china, anywhere is can imagine that ford selling cars, you will be able to buy the mustang, and that is the key difference in what changes this from the 5 generations of the past. >> thereafter and some changes. the biggest will be on where they are selling the car. you will be sitting down with alan mullally, someone you know very well. what do you want to ask him. that's what do you want to ask him -- what do you want asked

him? >> i want to ask him one question that has nothing to do with the mustang, whether or not he wants to go to microsoft. i've asked him about 20 times, but continuous speculation in the media means we have to keep inquiring about that. then i will ask him about the car. it is such an amazing leap forward from what they previously offered on the mustang. one thing that only gearheads are going to get is that this is independent rear suspension, and the mustang has been famous for being the only modern sports car to use a live rear axle. this is a little bit in the weeds, but it is the most important and most interesting part about this new car. ecoboost, the technology to boost fuel a 4-iency -- there is

cylinder version of the scar that will double the fuel efficiency. >> you mentioned this rear axle a few times. why is it so important? >> most modern cars have gone from a live rear axle, when temple, if you will, that 2 wheels, twoack independent rear suspension. if you hit a pothole with one wheel, the other one react. they are independent -- the other won't react. the 2 have been independent of each other. fortis been famous for sticking with this rear axle and the mustang. i've heard executives from other companies say how they are impressed with the balance this mustang achieves good diehard purists are going to be angry about the change. matt we just mentioned, will be interviewing the ceo

alan mullally in the next hour on "market makers." and other automakers revving and shaking this hour, the vice chairman of general motors. he says that gm is pulling its chevy brand out of europe entirely so that it can strengthen fox all sales. russia.ll stay in girsky says that chevy has had unacceptable financial performance in europe. chevy sales on the continent dropped 17% in the first 10 months of the year. the brand has 1.2% market share. perhaps an easier decision to pull out. the economic number has come in surprisingly good today, with a plunge in jobless claims and an increase that we sought in jp. what does that mean for the fed this month? michael mckee has the real deal on what to expect from the fed.

>> how about i answer that question tomorrow when we see the jobs numbers? the fed wants to see the labor market improving. we saw that in jobless claims today, a drop to 298,000. but that was thanksgiving week. throw that out. we can't really believe it. if we see that again next week, and we will get another jobless claims report for the fed meeting, then you know you have got something going on. tomorrow will be interesting. veryorecasts are for strong job growth, 185,000. streetspers on wall according to people i've been and thato is 200,000, would really put pressure on the fed to maybe think about tapering coming up this month. the other question that the fed wants answered is how strong is the economy? will this continue?

the gdp numbers would suggest that on its face but a lot of that is inventory building. with a lot ofck inventory and business collapses at the end of the month? they want to look at other indicators before making a decision. >> mike, thank you so much. hungry thisve been year, stock over 60%. " witho is "in the loop answers bit and i look at the u- haul billionaire. we have a look at the man who came out on top of the moving and storage business. ♪

one stock we are watching this morning is kroger. the grocery store chain reported third-quarter earnings in line with analysts estimates,

reaffirming the profit forecast for the year. joining us is the cfo and senior vice president of kroger. always great to see you here on "in the loop." >> thanks for having me again. inyour same-store sales came at 3.5%, better than what wall street estimated. your forecast on the fourth quarter is between three percent and 3.5%. not much change here. why? wide range.rly there are a few things going on with reduction in snap benefits. it is early to tell how double effect us and we would definitely expect to be near the high end of that range, not the low end. >> you mentioned that, cutting food stamps, about $5 billion, i believe, in this last quarter. are still assessing the impact, but do you expect it could have a possible big impact?

is fairly early. the cuts just began in november selling the holiday season, people obviously shop a little bit more during that time . it is difficult to assess how that consumer is going to react. -- earlyily of 4 indications are that most of the families and households are making up reduction in snap benefits with other cash that they have -- mike, when might you know for sure what the impact is going to be? >> i think it will be a little while. when you think about the holiday season, it is a big sales time. when you get into the holidays with business and new year's eve and the super bowl, those are days when people are more liberal with their spending and it will be difficult to assess the exact effect until we get into the first quarter.

as we look at that consumer, they have always spent a lot of cash in our stores in addition to the snap benefits. , that willas prices help the consumer have a few more dollars in their pocket to supplement the reduction in the benefits. what did you see during the holiday season, or have been seeing? >> so far we have had a great holiday season. we started thinking about the holiday season around halloween. if you look at our holiday sales and merchandising candy during that timeframe, we were extremely pleased with it. that will ride into november with a great thanksgiving season. we saw products that we expected to sell in the quantities fly off the shelves during that time , and we are stocked and ready for gray -- >> well, i -- i imagine the basics -- you are selling the turkeys and the potatoes and all

the basics. what about the more discretionary items in? are you seeing that robust? have agroup in portland lot of general merchandise in their stores, a lot of apparel, consumer electronics, things like that. they had a great black friday could that they started out slow for them but if you look at black friday, the full-day, they had a nice increase in their sales and a lot of the general merchandise categories year on year. from the start of the holiday selling season, the division that has a large amount of merchandise in their stores, 220,000-square-foot kinds of stores with general merchandise, we are pleased with how they started the season. >> i didn't know this but i am told that wine enthusiasts names ne retailer of the year. you have had over $1 billion in

sales, a lot of that in premium wine. that is interesting. you don't think of kroger as a premium wine cellar. >> a lot of people don't. it is a very important category for us for a very long time. a lot of stores with wine cellars. . you have your scotch tasting this morning and if i was there it would have been a wine tasting if i was there. i am pleased on multiple fronts that wine enthusiasts -- >> do you take any of the wine sold in kroger? cfo.am the they won't let me get into the merchandising world. they are a little smarter than that. >> mike, thank you so much. great to have you.

first joseph a bank offers to buy men's wearhouse, and then men's wearhouse offers to buy jos. a bank. we have the latest on this takeover dance between the 2. kobe bryant is getting ready for the return to the lakers this weekend. he told us about the team he would like to be playing for. ♪

>> the biggest gold miner in the world is shaking up its board. alix steel joins us now. how important is this move? >> in so many ways marigold is synonymous with peter munk. he is seen as the godfather of the industry. by johnbe replaced thornton, a former goldman

president. a banker will be at the helm of a gold company. barrick is nominating new independent directors which pension funds were positive on. the big changes happening under bad circumstances. gold prices falling 27% this year, barrick having to take a forcelion write-down, and one of its developments in the mind in the andes. what is the kind -- what does the company wind up looking like? to improveriority is its gold operations but it can also be a world leading company and other minerals. td securities says this might concern some investors. aornton is seeking to form partnership with chinese companies may be to cooperate on some mining projects and even more significant, perhaps diversify into hedging, selling the gold price now to lock in a price for it -- lock in a price. .> we have much more ahead

a few minutes away from the opening bell this thursday. the top 10 traits right after this right. ♪

>> you are "in the loop." i am betty liu. bloomberg television is "on the markets." scarlet fu has that is before the bell. >> gdp coming in faster than the first report had shown. indicatesbless claims a speculation that the federal reserve will taper sooner rather than later. yields on the 10-year are sparking -- spiking higher. tomorrow's nonfarm payrolls report should move it further. draghi says that they intend to keep interest rates

low for an extended period of time. we are "on the markets" again in 30 minutes. >> let's count down to the top youthe only trait -- trades need to know about today. number 10, disney, the world's largest entertainment company raised its annual dividend. the fourth straight year the increase comes after posting record sales and profits. shares are up 40% this year. >> how about something shiny for 99 -- number nine? tiffany is shining this morning. top into the year and, setting sustained sales momentum and margin upside. >> number eight, we have costco, those shares falling after november same-store sales that fell short of analyst estimates. the monthly results were negatively affected by lower gasoline prices and weak foreign currencies.

>> number seven is kroger. the grocery store chain reported earnings that met estimates. we heard from the cfo that the companies benefiting from its customer-first strategy and fuel cells during the quarter, lower fuel sales. is francesco holdings. third-quarter earnings were in line with estimates. but they caused -- they cut the profit forecast for the year. ,> number five, jos. a. bank the company that men's wearhouse is wooing as a takeover target. third-quarter earnings of the 3.5%ast range, with a 20 -- 23.5% gain. shares have gained more than 30% this year. ford, takingr is its mustang global. unveiled at the revamped

sports car that has a sleeker look and smaller engine, targeting buyers across 4 continents. number three us nuance communications to carl icahn is boosting his stake in a speech recognition software maker. steadily been since he nuance shares announced his stake in the company in april. >> number two, a retailer that targets teenagers reporting results that missed wall street estimates. aeropostale said that while back friday -- black friday sales showed improvement, it is still cautious for the rest of the season. it is all about cutting the prices. >> deals are out there. number one, apple, closer to reaching a long-awaited deal onh china to offer iphones the tremendously big network in china. "the wall street journal" reports that the deal has been

sealed and the rollout is expected to start later this month. the much starting right away. -- pretty much starting out right away. joining us from the cme is larry levin. -- larry do you expect a big report for the markets or will it be a wash until the end of the year? >> as far as the number, i don't think we will get a whole lot today. we are lower on the open bite 3 or 4 points on the s&p. the gdp number was pretty good. obviously, as we have talked about many times, that is telling everybody that the fed is going to taper sooner than later. continues, we get a number that is good tomorrow, i think we will see more of a down-draft and the stock index. it wasn't long since we were up at 1800. pretty nice break over the last week or so. we have seen more of an outsized reaction in the bond market.

why is the stock market so much more reluctant to respond? >> a whole lot of people believe that the economic data won't keep coming in strong and the drops or breaks in the market, people are buying into those things. if they are proven wrong and the economic data does come out strong, the market will keep dropping and the people will be forced to average out or get out of the market. so far right now, more people are buying these breaks and supporting a little bit but we have taken a big hit, 17 60 or so in the s&p, about a 60-point drop since we hit the high. the market is falling. >> larry, thanks for joining us. great to see you, larry levin of trading advantage at the cme. i want to bring in the president of edge asset management, where she received almost $25 billion in assets. her call is that she believes the federal start tapering in the first half of next year. that will lead to a stock market crash. there are still some areas that

she likes, including specialty reads -- reits. >> a great area of the market, and it is not allowed to use but the small and mid-cap companies. space tot lease health-care-related entities. these are booming areas. the biotech market ipos have been really on fire. that is a risky way to play the space. another way to gain access is through these specialty reits, and the more conservative, quality way to do it. >> i know you are bearish on some sectors, including telecoms is one that you are least interested in. a has been looking at the bullish -- scarlet has been looking at the bullish case. >> the carriers still have pricing power, especially when it comes to data.

video streaming, data and application usage, will likely prompt customers to update data plans. it could fortify margins. >> what about the argument that? >> the counterpoint is that there is a lot more competition in that space and growth is a little bit slower than we would've expected. with the valuations we are saying -- seeing better opportunities. >> opportunities might be an energy. julie has been looking at the supply and demand issues with energy. bloombergm at industries has been looking at this their case -- bear case. it is not bode to offer prices. if you look at a number of different sources -- supply and great and demand in green, the estimates going forward in 2014 etc. he iea, opec, it looks like supply could outstrip demand. points to a little

bit of a faltering in the chinese economy, which accounts global demand, as well as an abatement of the geopolitical risks that have been propping up oil prices this year. >> is that something you are pricing in? >> we take that into consideration but edge is a long-term investor and we are focused on this move towards energy independence in the u.s. there are opportunities to be at in this space. it has been underperforming because of the supply and demand issues. we use that as a buying opportunity. >> jill, thank you for joining us. coming up, bloomberg has uncovered a hidden billionaire. haulhead of you all -- u- has paid a heavy price for his fortune. i'm sure most people here have used a u-haul. kobe bryant is a -- about to get back on the court after the

leg injury could if he could take his dream team, who would be on it? we will tell you when a moment. ♪

>> it is a takeover dance that dates back almost 2 months and now jos. a. bank goes from hunter to hunted. the management team is gearing up to do with the questions on a conference call starting at 11:00 a.m. cristina alesci has been looking into how all of this could unfold. >> more like a fight, not a dance. if you keep in mind here, we might get guidance from the company on the call today. the big question will be which --agement team that's >> cristina, we are having some mic issues. we will fix that and get back to you. let's move onto another story.

it is almost impossible not to spot a u-haul on the highway. you have probably not seen the billionaire behind the biggest moving and storage business. peter newcomb joins us for more. great to have you with us. such is the price my story -- such a surprising life story for this guy named mark shoen. >> his father leonard shoen founded the company and he was a serial merrier -- marrier or divorcer. we have been tracking the fortunes of him and his brother. their stock in the parent of u- haul, something south of $1 billion. our reporter in boston was digging through some old filings. they had the storage business off the balance sheet and he started digging around and discovered that he has been

buying storage properties from u-haul over the years and that fortune is worth a couple billion dollars. >> clarify that. mark shoen is the largest shareholder. he is, what, the ceo? >> no, just the director of the company. what he has done over the last couple of decades is buying storage properties from u-haul. >> like actual storage properties? >> millions of square feet of storage space. billionis to two $1 ticky is very private. i can imagine, given on what has gone on in the family. >> we were unsuccessful finding a picture of him. the family has been locked up in lawsuits over the past few years. in 1986s a proxy fight

and since then it has been embroiled in litigation. ,> his father, leonard shoen who you mentioned -- isn't it alleged he committed suicide? >> he did. after he was kicked out of the company for the most part, he started as she tried making a go of it in -- he tried making a go of and in las vegas and it didn't work out and he threw himself and retreat into himself. >> -- and told himself. he had a number of wives and children with different wives. the siblings team up and sue each other. it has been an ongoing fight. it is pretty much settled now, just in the last year or so. >> the company itself is done well. >> real well. the stock is up almost 70% or share. >> the management team is been pretty stable. the familys downs -- sounds unstable but the management team -- >> management has been stable

and the stock has killed in the last couple of years. >> thank you so much, peter newcomb. for more on this story, check out our exclusive index at bloomberg.com/billionaires. let's get back to cristina . her mic problem has been fixed. talk about jos. a. bank and men's wearhouse. >> one thing is clear, we are between see a deal these 2 companies and that is indicated in the stock rise. both companies stock price have risen above their respective offer price. that the question is which management team is to keep its job and which is that of investors will get the take at premium. jos. a. bank reported earnings today that put it at an even stronger position than it was initially because it eat estimates -- it beats estimates. this comes at a time when men's wearhouse is particularly weak. it missed second-quarter earnings.

it has a fairly active investor in the stock agitating for men's wearhouse to do something. that does give jos. a. bank a leg up here and potentially gives wind at its back to being the aggressor. >> men's wearhouse has a vocal, active investor, eminent capital. what are they pushing for? >> they want to see something happen. they think there is a lot of synergy, benefits of these companies coming together, may be getting more leverage, supplies, taking the costs out. they own stock in both companies . they have more stock in men's wearhouse. they may be motivated a little bit to see a takeover premium for men's wearhouse but it is really unclear. men'se not heard from today but we will hear from them at some point. >> cristina alesci, our deals reporter. moving and shaking this hour, la

lakers superstar kobe bryant. the last time we saw him on the court was last season during the playoffs. he was hobbling off, as you remember, with a ruptured achilles tendon. ouch. bryant has a new line of shoes coming up from nike and there was speculation he might play the first game of the season tomorrow. now there are reports he will not come back until sunday at the earliest. jon erlichman talked to bryant about the team he would most -- most left to play on, his personal dream team. russell, myself, bill kareem abdul-jabbar, and larry bird. >> all right, well, that is kobe bryant. coming up, the ceo of dreamworks talks about the future of the movie business and why it may not be in the u.s. and it is been years in the making, but the volcker rule may be realized. we will have more on what is

likely to be in the final version.

>> time for the "global outlook." move over, america. by the end of the decade, america will no longer be the global leader in the movie market. this is according to jaffe katzenberg. >> five years from now, china will be the number one movie market in the world. we are $10 billion in america

today, $3.5 billion this year. in a 5 years they will surpass us and surpass us in many of these ways just purely on the numbers. >> katzenberg was also asked about fellow hollywood mogul barry diller, one of the backers of the online tv service that is being sued by a number of big- name media companies. who is just an amazing man, honestly, without question one of the most brilliant people even to this i still think he is one of the most amazing and brilliant, inquisitive, bastards i'vemean ever come across. >> well, that is a compliment for you. after 3 years, the volcker rule is finally ready for prime time, to the dismay of wall street. federal regulators are about to

finalize the rules banning banks from property. the question is, how much latitude will wall street get? answer.ok has the a volcker will be tougher than what wall street thought, right? >> that is the message we are getting from federal regulars and more specifically from treasury secretary jack lew. wall street banks have fought the volcker rule possibly on proprietary trading, arguing that they need to be able to hedge risks and perform their role as market makers. regulators have been divided over how to write the language. and whether they should carve out any exceptions, given those concerns. -- chairman gary gensler cftc chairman gary gensler, himself a goldman executive for a long time, has been pushing for the toughest line which possible. in the end, people have said that the final rule approved on tuesday will look more like tough,'s language, that

requiring banks to show that there is a specific risk. secretary of the treasury jack lew has signaled that tougher line in a speech in washington. >> it prohibits risky proprietary trading by protecting market making, such as when a firm facilitates selling bonds for image will find. prohibits risky trading bets like the london whale and puts in place strong compliance requirements that require those in charge of financial institutions to make sure that the tone at the top since the right signal to the whole firm. that london whale trade was described by jpmorgan as a whyfolio hedge, so that is we get that message from treasury secretary jack lew. some of the languages being nailed down before the final vote on tuesday. things could change. the message we're getting is that this will be tougher than wall street thought. the one consolation, bank's will

finally have some certainty and see a final rule, which they have been waiting for more than three years. >> what are we talking about in terms of a financial hit the banks? >> the stakes are very big for the banks. the market-making and principal training accounted for $44 billion of total revenue at the top five banks, goldman, to be morgan, morgan stanley, bank of america, citigroup, for the year ending in september. separate limits on investing in hedge funds and private equity firms, we're talking about 18% otalhe companies' t revenue. you can see why the language matters so much to them. >> thank you, peter cook, chief washington correspondent. at 2.e loop" is back in we are "on the markets" next. ♪

>> that does it for today on "in the loop." tomorrow, all eyes on the jobs report could mohamed el-erian will be joining us to break down the numbers and what it means to the economy. also, u.s. secretary of labor tom perez will be joining us. that is tomorrow starting at 8:00 a.m. eastern time. bloomberg television is "on the markets." scarlet fu has more. >> the big moves are in the bond market, where the prices of treasuries have declined, pushing the yield on the 10 year to 2.86%. claims ist in jobless fanning speculation that the fed will meet to taper sooner rather

than later. the europeans cap the monetary policy unchanged. after the ecb gave no indication of introducing a negative to positive -- negative deposit rate. we are seeing the same kind of move in a futures on anticipation about the fed tapering. today's futures and focus analyst atthe chief weeden and company, and he says you should be long and strong going into the urine. year end. spxre talking about the futures. we have some more volatility as we have a bigger macro calendar. fomc.e the the big picture, though, is that we are having a seismic shift in flows from treasuries into -- >> this is the rotation that

people have been calling for for months now. >> years, really. now it is actually happening. the flows are not enormous but it as inconsistent and that is enough to or will him concerns here. when you also dig into the economic data, we had a real standout on the gdp today, but half of that was inventory builds. actually, a lot of the business expenditures and consumer too, soures were down, if you are janet yellen and the rest of the team in the fed, you step back and say is there really a seismic shift in the economy? i'm not so sure they're going to react due to what we saw this morning. you highlighted that your call is for the s&p 500 futures. what about the cash market versus futures? >> in terms of the cash market they will basically track higher. on our options, we have been very active with upside calls in november and then again selling them earlier this week among

which is the natural thing to do going into a heavier macro calendar and with investors taking profits on -- >> we can't talk about futures without talking about volatility and the visx -- vix. >> it actually finished this 6ngest sub-14 close street in years just this week. we are edging higher as we get into this calendar. the overall picture for the vix should be subdued. higher, maybe the 14-17 range from now until your sand -- and to use them, but equities are higher, two. change when it comes to nasdaq futures? >> nasdaq might outperform here. when you see what is happening sprint, end of the year a lot of the higher data tends to do well and there are

upgrades in the stock situations within the nasdaq. you're seeing a lot of rapid rotation here. it should outperform in two years and. .> thank you so much we are "on the markets" again in 30 minutes. >> pony up. ford's iconic muscle car gets a new look and goes global for the first time. will this mustang have the horsepower to drive sales in europe and asia? we ask alan mullally. truck titans. meet the hidden billionaire behind america's biggest moving business. find out how he was catapulted to the top of u-haul. bryant might be sidelined by an injury, but his new nike shoes tell a story.